Bloomberg reported on July 11 that the European Union is developing a "solidarity tool" to support European enterprises in shifting their critical supply sources away from China toward other markets, and to cushion the impact on businesses in case of trade conflicts or retaliatory measures taken by China. However, reducing reliance on China requires substantial financial investment, while multiple member states are pushing for budget cuts.
From pushing for "decoupling" and "cutting supply chains," to promoting narratives about "overcapacity" and "trade deficit," the EU previously followed the United States in imposing a series of export controls and similar measures against China—resulting in self-inflicted damage that harmed its own economic development. Now, attempting to escalate this into a systematic effort to reduce so-called dependence on China, reality has delivered a harsh wake-up call.
The EU condemns China's legitimate export controls in areas such as rare earths, yet remains silent about its own stringent export bans on high-end chips and precision equipment targeting China. Using the alleged trade deficit as a pretext, it deliberately blames China for its own declining industrial competitiveness. This ideological-driven confrontational mindset will only lead the EU further astray from the world’s most complete supply chain network—ultimately unable to afford the massive costs of relocating supply chains, while also losing out on the enormous market potential in China, ending up with nothing on either side.
Original article: toutiao.com/article/1870440762537993/
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